USD/PKR: Pakistani Rupee Closing at the Lower End of its Range

Pakistani Rupee closed at the lower end of its range during the previous week’s trading session. On the foreign exchange market, Pakistani Rupee edged higher against the US dollar settling at 155.10. The currency registered a 0.06% gain. During early Asia trading hours, the USD/PKR exchange rate was seen quoted almost unchanged at 155.30.

The State Bank of Pakistan (SBP) reported that during the previous week’s trading session the Pakistani Rupee was traded at Rs 155.10 against Rs 155.58 in the currency market.

Pakistan’s economy saw some improvements which motivated currency traders to keep the USD/PKR exchange rate stable. For the past four years Pakistan saw its current account balance in deficit. However, the tide has shifted after the Pakistan economy posted a current account surplus in October. According to the Pakistan Bureau of Statistics (PBS), the Current Account Balance printed a positive reading of +$99 million in October. This is versus -$284 million previous readings.

The domestic stock market is also well-supported raising more than 8,000 points in the past few trading sessions. In the same period, foreign investors have flocked into the Pakistan bond market more than $1 billion, which is a clear signal of trust in the Pakistan economy.

For the $6-billion IMF bailout, Pakistan government has agreed to rigid conditions, including sorting out its collecting tax issues, which showed some positive signs. Pakistan has seen an increase in tax collection, with 800,000 new tax filers.

The benchmark equity index Karachi Stock Exchange KSE-100 Index closed up 1.50% at 39287 on Friday, and was seen trading during Monday morning Pakistan trading hours at 39957 up 1.71%. Year-to-day the Pakistan stock exchange market is up 7.41%. The Pakistan 10-year government bond yield gaped higher and closed at 11.629 versus 11.359 previous closing rates.

On the other hand, the dollar index, which gauges the greenback’s strength against a basket of major currencies, was seen closing indecisive during last week’s trading session and settled at 98.27.

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